No. 163.
Mr. Seward to Mr. Evarts.

No. 665.]

Sir: I had the honor to advise you on the 7th instant, by my dispatch No. 655, that the foreign representatives at this capital had again addressed themselves to the ministers of the Tsung-li Yamên, calling their attention to the request made in November last, and repeated afterwards, that an opportunity be accorded them to place their views regarding trade grievances before the ministers in conference.

This note was answered by the ministers of the Yamên on the 15th instant. They expressed willingness to meet us, whenever convenient for us.

To this we responded at once, naming Tuesday, the 20th instant, for such conference.

On Monday the 19th, in anticipation of the conference, the several foreign representatives met and decided upon the line of action to be followed at the meeting. Our determination was, substantially, that we should refer, first, to the statement of grievances presented in November, as indicating the matters of which we have a right, as we believe, to complain, and then to say that the dispatch sent to us by the ministers, answering in detail our letter of November, contained three proposals:

1st.
That we should abandon our extraterritorial privileges, and that all persons within the jurisdiction of China should become equally responsible to the government, and equally entitled to share in its benefits.
2d.
That we should stand by the existing treaties, each side exercising its best efforts to give effect to their stipulations.
3d.
That the convention concluded between Sir Rutherford Alcock, Her Majesty’s minister, and the Yamên, in 1869, but not ratified by his government, should be adopted by all the powers.

Referring to these proposals, we should answer that the first one cannot be taken into consideration, for reasons which it would be unnecessary to recite; that the second one would be more or less perfectly satisfactory to us, but that there is reason to fear that foreign governments and the Government of China would differ in the future, as they have in the past, regarding the meaning of some of the most important stipulations of the treaties; and that the third appears to offer a basis for discussion, inasmuch as the Alcock convention contains provisions which would prove beneficial, if adopted, to foreign interests and to those of China.

While adhering, then, to the reading of existing treaties, as indicated in the statement of grievances, the foreign representatives desired to propose conferences with the Yamên, intended, not so much to define the intent of existing stipulations, as to reach a basis for further stipulations which will be satisfactory to both sides.

This line was followed at our interview of Tuesday with the ministers of the Yamên, who responded that they are entirely willing to enter upon such conferences.

It was then arranged that discussions of given parts of the business in band should be left, in the first instance, to persons delegated by the diplomatic body, either chiefs of missions or secretaries, and to such members of the Yamên or secretaries, on the Chinese side, as may be named by the Yamên.

On the same day the several foreign representatives met in conference and agreed to refer the leading questions at issue with the Chinese to persons of their number, for the definition of the objects in view, and of remedies, as follows:

To Sir Thomas Wade, the reforms needed in order to place the import trade upon a more satisfactory basis.

To Mr. von Brandt, the reforms needed for the export trade.

To Mr. Seward, the reforms needed in the currency in order to regularize the collection of customs duties and dues.

The several representatives met again yesterday, Thursday, the 22d instant, in order to submit their reports.

My own was called for first and I read a memorandum which I shall transmit to you in a separate dispatch. The conclusions expressed in it were accepted by my colleagues, and I was requested to place the subject before the ministers of the Yamên, reserving one point to which I shall allude in my separate letter.

The report of Mr. von Brandt was then given, partly from manuscript and in part orally. His proposal was to take the Chinkiang rules of 1877 as a basis and to prepare an improved set of rules for the issue of transit passes outwards, and to put these on trial for a given period further negotiations with the Chinese to be delayed until experience has been gained of the practical working of the rules.

Sir Thomas Wade was not prepared with a written statement or with proposals, but submitted for consideration the question whether we find it more prudent and desirable to move toward our object, the prevention of the irregular and unlawful taxation of trade, by an attempt to throw safeguards around the execution of our treaties, or by proposing an entirely different system, substantially such, for instance, as that [Page 256] proposed in the British convention of 1869, and which met great favor at the general conferences of last year.

I have already informed you, in my dispatch No. 591, of the 10th of February, that, while very anxious to avoid action which will disturb existing treaty stipulations, the circumstances affecting the import trade are such that it appears desirable “to seek a common standing ground with the Chinese in such modifications of the treaties as will more or less perfectly satisfy both sides.” The same dispatch contained a statement of the measures which, in my opinion, should be instituted to this end, and which do not differ in principle from the plans proposed in the convention of 1869.

The propriety of pursuing this course was assented to at once by the several representatives, and Sir Thomas Wade was requested to reduce the proposal to writing for the more particular discussion of details.

I understand that the object of the several ministers is to carry discussions with the Yamên far enough to ascertain exactly what can be accomplished in the several directions named, and then to refer the whole matter to our respective governments with a request for instructions. This, at any rate, is my own proposal.

I respectfully ask your approval of the action reported in this dispatch.

I have, &c.,

GEOEGE F. SEWAED.
[Inclosure in No. 665.]

Prince Kung to Mr. Seward.

Prince Kung, chief secretary of state for foreign affairs, herewith makes a communication in reply:

Upon the 9th instant I had the honor to receive a collective note from your excellencies the foreign representatives in the matter of commercial grievances, stating that upon the 3d of February last they addressed to me a note requesting that a day for a conference be named, but had received no response, &c., &c.

I have the honor to observe in response that the note of February 3, from your excellencies, was received, but inasmuch as this office had upon the 19th of January suggested three different propositions in the business, and asked them to indicate which they preferred, I supposed that an answer should be awaited before holding a conference.

Being now in receipt of your excellencies’ note, I beg that the foreign representatives will suggest the time for the conference.

His Excellency George F. Seward, &c., &c., &c.